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Number 20 / Volume 27 / December 18, 2013

Industry Canada’s forthcoming update of the 2007 S&T Strategy provides an ideal opportunity to address the policies underlying the nation’s anemic innovation performance. A foresight report released for limited circulation last year suggests there’s much work to do.

A comprehensive foresight exercise on Canadian technology and innovation suggests that failure to embrace innovation and effectively respond to emerging global challenges will reduce the country to a technological backwater with the status of a re-developing nation.

The Graphics, Animation and New Media (GRAND) Network of Centres of Excellence (NCE) is in the midst of a year-long transition phase as it prepares to compete for renewed funding in 2014. Funded for an initial five-year phase in 2009 with $23.

Fed Dev Ontario has unveiled a new suite of programs worth $530 million to stimulate and diversify the economic engine of Canada’s most populous province over the next five years. The Southern Ontario Prosperity Initiatives (SOPI) are largely business focused but encourage companies to secure the feedstock for innovation by collaborating with post-secondary institutions, not-for-profit research institutions, angel investors and other sources of risk capital.

The National Research Council (NRC) has launched four market-focused research programs to assist the construction industry in lowering costs through the entire construction life cycle, and accelerate and validate the development of new materials, systems and decision-making tools.

John Stone, retired, Bureau of the Intergovernmental Panel on Climate Change

Science muzzling and climate change
By John Stone

No science, no evidence, no truth, no democracy. This has become the rallying cry of scientists and those that support science in this country. It is in response to the sad and extensive litany of injustices done to science and scientists in Canada over the past few years.

This year, the RE$EARCH MONEY conference will look at how Budget 2014 is changing the balance between indirect and direct support of firms and the balance between supporting basic and applied research in academia and academic-industrial research collaboration.

Canada’s industrial heartland is receiving $200 million over five years in federal funds to enhance global competitiveness through the development of cutting-edge manufactured products and technologies.

Canadian researchers and companies have an unprecedented opportunity to tap into billions of dollars in collaborative projects with their European counterparts, but concerns over a dearth of funding and lack of coordination between funders in this country means many of these opportunities could be lost.

Digital infrastructure council seeking input

RSC launches colleges for new scholars

People

Tim Murphy

Dr. Steven Chu

Renata Osika

Dr Andrew Bjerring

Number 19 / Volume 27 / December 6, 2013

Industry Canada and its agencies are moving the innovation yardsticks with initiatives that could have a significant positive impact on Canada’s competitiveness and productivity. Two initiatives were announced in recent days, responding to government-appointed expert panels calling for better support of innovative small businesses and the space sector.

David Crane, commentator and consultant on innovation policy

Knowledge capital underpins productivity gains
By David Crane

Understanding the innovation process remains a key challenge for policymakers and business leaders despite an endless stream of studies. Yet getting it right is even more important today as we struggle to generate good jobs and wealth, with emerging markets such as China, Brazil, Mexico and Korea climbing up the value-added ladder while the US moves to more firmly position itself as the centre for advanced manufacturing and high-tech industries within NAFTA.

This year, RE$EARCH MONEY will look at how Budget 2014 is changing the balance between indirect and direct support of firms and the balance between supporting basic and applied research in academia and academic-industrial research collaboration.

New Statistics Canada data reveal that federal in-house R&D declined a staggering 17.8% between 2010 and 2012 before an anticipated levelling off in 2013 to $2.47 billion. Government funding of R&D sagged $533 million or 8.

The Industrial Research Assistance Program (IRAP) is rolling out the initial components of Canada’s first comprehensive innovation concierge service to ease and facilitate business access to innovation-related programs from coast to coast.

Industry Canada has responded to the space-related recommendations of last year’s Aerospace Advisory Council report with a suite of initiatives and changes aimed at putting the sector back on a firm footing after years of decline (R$, December 6/12).

Canada’s faltering industrial R&D (IR&D) performance can be traced to long-standing misconception that innovation policy is an extension of science policy. By viewing innovation policy as a linear process from academic research excellence to success in the marketplace, the central role of the firm is largely ignored.

“The firm – especially Canadian-owned firms – are key agents of innovation, Therefore, innovation policy needs to begin with a firm-centric concept. IR&D needs to be thought of as a response to innovation policy, not as a response to science policy.

Oceans control weather and environment, and provide a wealth of goods and services upon which humanity depends. Canada is shaped by the ocean, with three major ocean basins and the longest coastline in the world.

Industry Canada and its agencies are moving the innovation yardsticks with initiatives that could have a significant positive impact on Canada’s competitiveness and productivity. Two initiatives were announced in recent days, responding to government-appointed expert panels calling for better support of innovative small businesses and the space sector.

David Crane, commentator and consultant on innovation policy

Knowledge capital underpins productivity gains
By David Crane

Understanding the innovation process remains a key challenge for policymakers and business leaders despite an endless stream of studies. Yet getting it right is even more important today as we struggle to generate good jobs and wealth, with emerging markets such as China, Brazil, Mexico and Korea climbing up the value-added ladder while the US moves to more firmly position itself as the centre for advanced manufacturing and high-tech industries within NAFTA.

This year, RE$EARCH MONEY will look at how Budget 2014 is changing the balance between indirect and direct support of firms and the balance between supporting basic and applied research in academia and academic-industrial research collaboration.

New Statistics Canada data reveal that federal in-house R&D declined a staggering 17.8% between 2010 and 2012 before an anticipated levelling off in 2013 to $2.47 billion. Government funding of R&D sagged $533 million or 8.

The Industrial Research Assistance Program (IRAP) is rolling out the initial components of Canada’s first comprehensive innovation concierge service to ease and facilitate business access to innovation-related programs from coast to coast.

Industry Canada has responded to the space-related recommendations of last year’s Aerospace Advisory Council report with a suite of initiatives and changes aimed at putting the sector back on a firm footing after years of decline (R$, December 6/12).

Canada’s faltering industrial R&D (IR&D) performance can be traced to long-standing misconception that innovation policy is an extension of science policy. By viewing innovation policy as a linear process from academic research excellence to success in the marketplace, the central role of the firm is largely ignored.

“The firm – especially Canadian-owned firms – are key agents of innovation, Therefore, innovation policy needs to begin with a firm-centric concept. IR&D needs to be thought of as a response to innovation policy, not as a response to science policy.

Oceans control weather and environment, and provide a wealth of goods and services upon which humanity depends. Canada is shaped by the ocean, with three major ocean basins and the longest coastline in the world.

Social enterprise accelerator launched at UNB

People

Sean Cunliffe

Karimah Es Sabar

Mark Lievonen

Sean Cunliffe

Karimah Es Sabar

Mark Lievonen

Number 18 / Volume 27 / November 26, 2013

Initial details on the pending update to the 2007 federal S&T Strategy suggest that, rather than a substantive shift in current policy, the new framework will be more modest in scope (see page 3). Much will have changed in the seven years between the original strategy and the 2014 unveiling of the new document and we can expect those shifts in the domestic and international innovation ecosystem to be addressed.

This year, RE$EARCH MONEY will look at how Budget 2014 is changing the balance between indirect and direct support of firms and the balance between supporting basic and applied research in academia and academic-industrial research collaboration.

The Canada Foundation for Innovation (CFI) is launching an on-line service this week to assist companies and other organizations in accessing facilities, equipment and expertise funded by the CFI or that currently use CFI-funded infrastructure.

The opposition New Democratic Party (NDP) is tabling a private member’s bill this week calling for the creation of a Parliamentary Science Officer (PSO) to provide independent science information and advice to Parliament.

Recent acquisitions by telecom pioneer Mitel Networks Corp and Waterloo-based Open Text Corp are powerful indicators that Canada’s information and communication technology sector (ICT) is bulking up to increase market share and take on global competition for cloud computing.

An external review of the Council of Canadian Academies (CCA) has found that demand for its expertise has soared 85% over the past three years and that its sponsors are becoming increasingly diverse. The external evaluation panel also concluded that the CCA’s work has had a substantial and beneficial impact on government, policy makers and society at large and “has planted seeds that will have future policy and program impacts”.

Provincial angel network Ange Québec is aiming to boost its annual deal flow by nearly one third by gaining access to the vast pool of technologies generated by Quebec’s valorisation organizations. The agreement will see the four technology transfer organizations — representing all sectors and all major academic institutions in the province — present their most promising business opportunities to Anges Québec.

Alberta is first out of the gate to launch a SUPPORT Unit for its Strategy for Patient Oriented Research (SPOR), matching $24.3 million in funding from the Canadian Institutes for Health Research (CIHR).

Industry Canada has released a broad description of the consultation process surrounding the updating of its 2007 science and technology strategy — Mobilizing Science and Technology to Canada’s Advantage — but it’s unclear whether the new policy directive will be ready in time for the next federal Budget, expected in late March.

Half of the 2009 class of the Centres of Excellence in Commercialization and Research (CECR) have been approved for federal support beyond their initial five-year funding commitment, following a recent review of their operations and bids for extended assistance.

Canada is at a stalling point in its science and economic development and efforts to develop a knowledge-based economy could easily slip backwards unless the government gets serious about its science policy, says Canada’s former national science advisor (NSA).

The National Research Council (NRC) is launching a new co-investment program to help companies economically exploit remote natural resources and lower grade ore. The High Efficiency Mining (HEM) R&D program is seeking firms throughout the mining supply chain that require new technologies to increase production at lower cost.

New Brunswick launches $5-million startup fund

Startup Canada launches national task force

People

Mark Wolff

Drs Kevin Costello and Davide Gaiotto

Number 17 / Volume 27 / November 11, 2013

Canada’s corporate R&D leaders had a good year in 2012, despite the lingering impact of the economic downturn and charges of cash hoarding. According to the latest data from Research Infosource, the Top 100 firms ramped up their spending by 12.

Canada’s aerospace companies have surged to account for the largest single share of R&D spending in 2012, fuelled by a third year of explosive growth by Bombardier Inc which propelled the Montreal-based multinational to the #1 spot.

It was a fickle year for university research funding in 2012 as institutions and provinces that performed well in 2011 saw their fortunes reversed. A constrained funding environment kept the overall increase for Canada’s Top 50 research universities at 1.

An OECD report says indirect support to business such as R&D tax incentives can lead to unintended consequences for innovation and government revenues, as well as favouring large multi-national enterprises (MNEs) over domestic, stand-alone firms.

MaRS Innovation is embracing crowdfunding to accelerate the commercialization of a promising technology for more accurately determining the efficacy of chemotherapy for treating breast cancer. The Centre of Excellence for Commercialization and Research (CECR) is aiming to raise $97,000 by November 27th through the Indiegogo campaign platform to fund an initial clinical trial, with longer-term goal to raise a total of $687,000 to support a complete suite of four parallel clinical trials.

Robert Luke, Vice President, Research and Innovation at George Brown College

Supply and demand in the innovation economy
By Dr Robert Luke

Canada leads the world in tertiary education, yet we have persistent problems increasing our capacity for innovation and productivity. Canada has excellent basic research capacity, but we are weak in our ability to innovate and commercialize research.

The National Research Council (NRC) has officially announced the last of its initial suite of flagship programs devoted to industrial materials. The venture will see NRC allocate $30 million over five years with an anticipated $25 million from collaborating partners to produce new biomaterials using agricultural and forestry by-products on a project-by-project basis.

Three Western- and Atlantic-based colleges have emerged as the top research performing institutions in their class, according to the inaugural Canada’s Top 50 Research Colleges ranking. SAIT Polytechnic, NAIT – Northern Alberta Institute of Technology and College of the North Atlantic (Newfoundland) accounted for 18.

Canada’s considerable expertise and investment in ocean sciences is being threatened by the lack of effective policy formulation and implementation, according to a major new report from the Council of Canadian Academies.

Stem Cells Inc acquires Calgary-based NeuroSpheres

Generic drug report attacks brand-name industry

People

John Chen

Jim Ghadbane

Dr Michael Berendt

Number 16 / Volume 27 / October 28, 2013

Compare and contrast the processes for the just-released Quebec Research and Innovation Strategy with the recently announced updating of the federal Science, Technology and Innovation Strategy. You’d be hard pressed to find a more glaring example of bottom-up versus top-down planning.

Canada’s microsystems and microelectronics companies have an opportunity to succeed in niche markets but they require effective government regulations and assistance to turn inherent advantages into market success.

Industrial R&D spending will decline this year by 2.8% to $15.6 billion after posting modest increases in 2012 and 2011, according to the latest data from Statistics Canada. Business R&D outlays are now 6.

The first of two reports on the restrictions impacting the ability of federal scientists to publicly discuss their work has been released. It is backed by a survey that found 71% of respondents believe political interference “has compromised Canada’s ability to develop policy, law and programs based on scientific evidence”.

Dr Kamiel Gabriel, is a professor of engineering and applied sciences, University of Ontario Institute of Technology

Learning-by-doing: Canada needs a new breed of graduates with advanced leadership skills
By Dr Kamiel Gabriel

On October 1, 2013, Peter Nicholson, former president of the Council of Canadian Academies, made a presentation in Ottawa to launch the newest report by the CCA, provocatively entitled: Paradox Lost: Explaining Canada’s research strength and innovation weakness.

The need for strong vibrant industry sectors figures prominently in the Quebec government’s new National Research and Innovation Policy (NRIP). It contains $1 billion over five years to enhance competitiveness by stimulating new partnerships and encouraging collaboration and increased corporate R&D spending.

The recently formed New Brunswick Research and Innovation Council (NBRIC) has launched a $15-million competition to select between three and six large-scale industry R&D projects — a key element of its new $80-million research and innovation strategy.

Start-Up Visa program adds entrepreneurship stream

Feds fund risk analysis study for New Brunswick

FP Innovations Partners with Alberta's Tech Futures

Number 15 / Volume 27 / October 10, 2013

Quebec’s high-profile weighting of research and innovation in its new $2-billion jobs strategy is yet another example of the province’s enlightened policy environment. is an aggressive, holistic approach for tackling persistent problems in the provincial economy that include high debt levels, sagging productivity and an unemployment level above the national average.

Canadian businesses are only as innovative as they need to be but dramatic changes will be necessary if they are to successfully compete with powerful forces that threaten the nation’s continued prosperity.

A new Printable Electronics Consortium (PEC) back-stopped by funding and expertise from the National Research Council (NRC) is optimistic that its work developing prototypes and new technologies can establish Canada as a leading player in the emerging and rapidly expanding field.

The National Research Council (NRC) has launched two large-scale, multi-year collaborative research programs for bioenergy systems and energy storage that devote considerable staffing resources over a six-year period.

Quebec’s is allocating $581 million over the next four years towards research and innovation as part of a comprehensive $2-billion jobs creation strategy unveiled October 7th. Entitled Quebec’s Economic Policy — Putting Jobs First, the plan pulls together three policies — including the National Research and Innovation Policy (NRIP) — and its Transportation Electrification Strategy into an integrated attempt to boost the province’s economy, stimulate innovation, attract foreign investment and reduce unemployment, currently standing at 7.

CDRD establishes Atlantic Research Node

CANARIE's DAIR attracts more than 50 companies

People

Kevin Fitzgibbons

Chris Hadfield

Dr Jeffrey Crelinsten

Number 14 / Volume 27 / September 26, 2013

The difficulties companies face when trying to access and utilize academic research is seen as one of the central weaknesses in the Canadian innovation system. Hopefully that is beginning to change with a handful of new strategies being adopted by research institutions emerging across the country.

The association representing Canada’s colleges is asking the federal government to continue building the innovative capacity of its members with a suite of recommendations that, if accepted, would move college R&D funding closer to its long-term goal of securing 5% of the $2.

Genome British Columbia is helping to fund an ambitious applied research project that its backers say could contribute to the eventual elimination of HIV/AIDS. The project will see the use of genomics to develop an improved drug-resistance test, an early warning system to monitor and map drug resistance and personalized drug treatment for patients based on their particular DNA profile.

The Business Development Bank of Canada (BDC) is doubling its allocation of funding for the healthcare sector from $135 million to $270 million to meet the rapidly growing demand for new technologies aimed at containing rising costs and enhancing efficiencies and delivery times.

The Ontario Genomics Institute (OGI) is adding some pull to its commercialization activities with the formation of Scintelligence, a new division that matches the needs of industry with life sciences research expertise.

In recent years, we have witnessed a tendency for granting agencies, particularly at the federal level, to concentrate research funding in ‘elite’ researchers and students who receive an increasingly high proportion of available funds.

Dr Elizabeth Cannon, president and vice-chancellor, University of Calgary.

Taking on the world’s rising economies through collaboration and research investment
By Dr Elizabeth Cannon

The third Science, Technology and Innovation Council “state of the nation” report, released earlier this year, says Canada risks erosion of its competitive talent advantage if it does not make significant investments in research and education.

The Association of Canadian Community Colleges (ACCC) is one of 39 associations to share $3 million in funding under the Global Opportunities for Associations (GOA) program. The ACCC will receive $135,000 to allow for its members to lead or participate in foreign missions to promote college education in Canada — the largest amount awarded to eight education-focused associations receiving money this year.

The Univ of Calgary has launched a new institute dedicated to multi-disciplinary research into quantum science, the first in Western Canada and one of only three similar institutes in Canada. The Institute for Quantum Science and Technology (IQST) was established by the faculty of science and brings together researchers from the departments of chemistry, computer science, mathematics, statistics, physics and astronomy.

Bioniche Life Sciences Inc expects to emerge from a nasty proxy battle and the sale of two major divisions following the settlement with dissident shareholders and the resignation of its founder, president and CEO, Dr Graham McRae.

NRC and TeraXion forge strategic partnership

Research identifies small molecule drug candidate

People

David Dodge

Dr Eric Newell

Margaret Bloodworth

Number 13 / Volume 27 / September 10, 2013

A reasonable case can be made that Canada’s economic fundamentals are sound and bode well for future prosperity. Yet an equally sold argument can be formulated showing that weak innovation and productivity stemming (in part) from anemic industrial R&D (IR&D) are a recipe for economic stagnation.

An expert panel has concluded that Canadian industrial R&D (IR&D) remains weak for a host of complex, often poorly understand reasons, although four key industries display considerable strength. Assembled by the Council of Canadian Academies (CCA), the panel’s report — The State of Industrial R&D in Canada — found that while R&D activity is extensive and spread across a wide range of industries, the relationship between R&D, S&T and innovation is asymmetrical and in need of closer examination.

The Experimental Lakes Area (ELA) research facility was officially thrown a life line with the decision by the Ontario government to provide $2 million annually as part of an interim agreement between the province, the federal government and the proposed new operator, the Winnipeg-based International Institute for Sustainable Development (IISD).

Despite never being officially announced, the National Research Council’s Printable Electronics (PE) flagship platform is up and running, signing on new industrial partners and executing research programs to accelerate the adoption of new functional materials and print-based production processes.

An annual ranking of national competitiveness finds that Canada has stalled at 14th and is displaying declining performance in key areas that support innovation. The World Economic Forum (WEF) found Canada is showing serious decline in the areas of innovation and business sophistication — one of 12 pillars contained in its Global Competitiveness Index (GCI) of 148 nations.

Number 12 / Volume 27 / August 27, 2013

As the world’s developed economies seek ways to retain their brain power and economic muscle, AM is increasingly being viewed as a key driver in developing advanced economies in the face of increasing competition from emerging nations.

Looking out over the innovation and policy funding landscape, Dr Ian McWalter sees a very different environment from 2010 when CMC Microsystems secured $128 million in funding to advance the state and commercialization of micro- and nano-electronics in Canada.

Federal spending on S&T has fallen 12% over the last four years — 3.3% in the current fiscal year alone — as deficit reduction measures continue to reduce outlays of support for all sectors. Federal S&T outlays for FY13-14 totalled $10.

The Information Technology Association of Canada (ITAC) is urging the government to accelerate implementation of the Canada Venture Capital Action Plan (CVCAP) and reverse reductions in the federal R&D tax credit program as part of its pre-Budget submission to the Finance department.

A resurgence of interest in the biotechnology sector could propel the Centre for Commercialization of Regenerative Medicine (CCRM) into the sweet spot as it gears up programs and services aimed at moving key discoveries into the marketplace.

A European Commission-funded study estimates that half of all scientific papers published in 2011 are available for free through open access as the EU announced that it will be mandatory for all scientific publications funded through its Horizon 2020 initiative to be open access.

As the world’s developed economies seek ways to retain their brain power and economic muscle, AM is increasingly being viewed as a key driver in developing advanced economies in the face of increasing competition from emerging nations.

Looking out over the innovation and policy funding landscape, Dr Ian McWalter sees a very different environment from 2010 when CMC Microsystems secured $128 million in funding to advance the state and commercialization of micro- and nano-electronics in Canada.

Federal spending on S&T has fallen 12% over the last four years — 3.3% in the current fiscal year alone — as deficit reduction measures continue to reduce outlays of support for all sectors. Federal S&T outlays for FY13-14 totalled $10.

The Information Technology Association of Canada (ITAC) is urging the government to accelerate implementation of the Canada Venture Capital Action Plan (CVCAP) and reverse reductions in the federal R&D tax credit program as part of its pre-Budget submission to the Finance department.

A resurgence of interest in the biotechnology sector could propel the Centre for Commercialization of Regenerative Medicine (CCRM) into the sweet spot as it gears up programs and services aimed at moving key discoveries into the marketplace.

A European Commission-funded study estimates that half of all scientific papers published in 2011 are available for free through open access as the EU announced that it will be mandatory for all scientific publications funded through its Horizon 2020 initiative to be open access.

AIAC to assist BC aerospace association on strategic plan

Dal and Helmholtz offer ocean science grad positions

People

Drew Lyall

Dr Julio Montaner

Drew Lyall

Dr Julio Montaner

Number 11 / Volume 27 / July 30, 2013

While it’s premature to judge the wisdom of the government’s S&T-related Cabinet appointments, the selection of MP Greg Rickford as the new junior minister of state for science and technology will likely do little to raise the profile of research and innovation.

One of Canada’s most distinctive and successful innovation engines may be getting a makeover. AVAC Ltd is currently being assessed by the Alberta government to determine whether changes should be made that would allow the investor in provincial agriculture and agrifood value-added products and services to become self-sustaining.

The Canadian Institute for Advanced Research (CIFAR) has whittled down the 280 respondents to its first ever Global Call for Ideas (GCFI) to 12 as it accelerates its transition to a research organization that represents the cream of the world’s top researchers and attracts a greater portion of private sector support.

The Canadian Neutron Beam Centre (CNBC) has been transferred back to Atomic Energy of Canada Ltd (AECL). The move, effective April 1st, comes with a commitment of just two years of funding as the federal government implements a government-owned, company-operated (GoCo) management structure for the crown corporation and decides whether to continue long-term nuclear research at the Chalk River facility.

The Conservative government’s July 15 Cabinet shuffle represents something of the status quo for science and technology with new faces at Industry Canada and some of the major science-based departments but little indication of a relaxation of the central control that has dominated the innovation agenda for the past several years.

Dr. Tom Corr, president and CEO, Ontario Centres of Excellence

Colleges emerge as key innovation player
By Dr Tom Corr

Canada’s community colleges continue to prove their worth while refusing to be typecast: once thought of only as the place students go when they can’t get into university, they’re now increasingly likely to be used as finishing schools for university graduates looking to focus their career opportunities.

The latest survey by the National Angel Capital Association (NACO) reports that angel activity among its members resulted in 139 investments — 102 new, 30 follow-on and seven unknown — worth $40.5 million in 2012.

The Conference Board of Canada (CBoC) has released the first of several metrics-based reports on firm level innovation showing that only 15% of firms take a territory-market expansion approach to innovation.

The picture of our pharmaceutical industry is not rosy. According to the Patented Medicine Prices Review Board, Canada’s pharmaceutical expenditures on R&D have declined by over 30% since a high in 2008 to 2011.